BTC reached a new all-time high in trading yesterday, surpassing USD 111k, driven by investor optimism amid US President Donald Trump’s support of crypto. Open interest for Bitcoin call options came in at USD 110k, USD 120k and USD 300k on Deribit earlier this week.

What’s happening: BTC has been getting positive press recently, with the US Senate advancing a stablecoin bill that would create the first regulatory framework for stablecoins in the US in what would be a vote of confidence for the crypto sector, CNBC reports.

On the flip side, stocks and long-dated bonds saw a sell-off amid investor concerns about rising inflation set to hit the country, rising government debt, and warnings from the US Federal Reserve’s chair Jerome Powell of an economic slowdown or recession, CNBC reported (here and here). Investors are increasingly viewing BTC as a safe alternative asset to US bonds.

Institutional confidence is on the up as well, with JP Morgan set to allow customers to buy cryptocurrencies through the bank and Coinbase’s recent inclusion on the S&P 500.

This follows a sell-off last month, which saw the crypto asset drop to trade below USD 75k. Describing the drop as “a correction within a bull market,” IG analyst Tony Sycamore added that if BTC continues to trade about USD 100k then this could push its value eventually to USD 125k.

Momentum is set to continue in 2025, with Standard Chartered expecting its value to reach USD 200k by the end of the year. Traders will monitor BTC’s ability to stabilize above USD 110k as institutional activity and regulatory developments dictate near-term momentum.

MARKETS THIS MORNING-

Asian markets are mostly in the green, with Japan’s benchmark Nikkei leading gains at 1%, despite inflation rising to a two-year high of 3.5% in April. Meanwhile, Wall Street futures hover near the flatline following a losing day for the indexes amid concerns over the US budget deficit and higher US Treasury yields.

ADX

9,667

+0.0% (YTD: +2.6%)

DFM

5,453

+0.3% (YTD: +5.7%)

Nasdaq Dubai UAE20

4,499

-0.1% (YTD: +8.0%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.1% o/n

4.1% 1 yr

TASI

11,189

-1.0% (YTD: -7.2%)

EGX30

31,976

+0.4% (YTD: +7.5%)

S&P 500

5,842

-0.0% (YTD: -0.7%)

FTSE 100

8,739

-0.5% (YTD: +6.9%)

Euro Stoxx 50

5,424

-0.6% (YTD: +10.9%)

Brent crude

USD 63.93

-0.8%

Natural gas (Nymex)

USD 3.28

+0.7%

Gold

USD 3,320.8

-0.1%

BTC

USD 111,024

+2.5% (YTD: +17.5%)

Chimera JP Morgan UAE Bond UCITS ETF

USD 3.60

+0.0% (YTD: +1%)

S&P MENA Bond & Sukuk

142.5

-0.5% (YTD: +1.8%)

VIX (Volatility Index)

20.28

-2.8% (YTD: +16.9%)

THE CLOSING BELL-

The ADX remained flat yesterday on turnover of AED 1.3 bn. The index is up 2.6% YTD.

In the green: Phoenix Group (+12.7%), Alef Education Holding (+5.0%) and Alpha Dhabi Holding (+4.9%).

In the red: Abu Dhabi National Takaful (-9.8%), Ins. House (-8.1%) and Adnoc Logistics and Services (-2.0%).

Over on the DFM, the index rose 0.3% on turnover of AED 460.9 mn. Meanwhile, Nasdaq Dubai was down 0.1%.

CORPORATE ACTIONS-

RKC board recommends 2% dividend: Ras Al Khaimah for White Cement’s board recommended a cash dividend to shareholders at a rate of 2% of the company’s capital for the period ending 31 March 2025, according to an ADX disclosure (pdf).

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